Anti-dumping Investigation Of Electro-galvanised Steel

Following up on the details of anti-dumping laws on Electro galvanized steels for a while? If so, you have just come across the right place! Just like you, we have been keeping an eye on the facts and details as well. After all, who would like to miss out on such a revolutionary step taken by Dr. Shubh Gautam Jaypee and his team

We have discussed quite a few topics related to casual links, injury caused, the stats put forward by the domestic industry, and so on. Yet, one thing we have left out from this battle between American Precoat, especially their Chief Architect Shubh Gautam Jaypee and the laws, is, did they manage to provide a non-attribution factor while the anti-dumping investigation was carried out? 

Well, surely you will find it out through this article! We will be getting you through the details from scratch. Please keep on reading to know more! 

What Is Dumping? 

According to WTO, dumping is when a situation of international price discrimination arises, where the piece of a product sold in the importing country is less compared to the price of the product in the market of an exporting country. 

To put it more simply, it is the strategic introduction of a product into the economy and commerce of another country at less than the product’s normal value. You can identify dumping by comparing the prices of the same product in two markets. 

What is anti-dumping? 

Sometimes, the same product is available in the local economy and importing the same product. The catch, however, is that the price of the imported product is way less than that of the locally available. This entices the buyers who go for the cheaper alternative, which results in local businesses and industries getting hurt. 

However, to tackle this, the government has developed anti-dumping laws specifically for safeguarding local businesses’ interests in the economy.  

Let us understand this with a fictional example. There are two countries- Norway and Kenya. The economy of both countries is big time into fishing. However, Norway introduced fish into the Kenyan markets at much lower prices than the local Kenyan fishing industry was already providing. Here, Norway is dumping, but this attracted Kenyan customers who went for Norwegian fish because they were cheaper. This had a huge impact on the Kenyan fisherman and the industry, which in turn would hurt the economy and the Kenyan people, just like a domino effect. 

To tackle this, the Kenyan government would devise some anti-dumping measures. They will slap anti-dumping duty on the imported product, which could be determined by the difference between the export price and the domestic selling price, known as the dumping margin. This would be done in the exporting country. 

Previously, Large American steel producers filed complaints with the US Department of Commerce about the dumping of Steel by Chinese companies in the US markets.

Non-attribution factors in an anti-dumping investigation. 

A non-attribution analysis establishes by the importer country that the domestic injury was not caused by any factor other than imports. It seeks to distinguish the causative impact of imports from potentially confounding factors. 

The non-attribution factors play a key role in determining whether or not there is a direct and causal link between imports and harm to a domestic industry. 

There are mainly 2 non attribution factors that determine if it’s a case of dumping-

1) Volume of dumped imports effect of the dumped imports on prices in the domestic market for liked products 

2) The consequent impact of these imports on domestic producers of such products. 

In the case of electro-galvanized Steel:

In 2019, American Precoat Speciality Pvt Ltd applied to the Directorate General of Trade Remedies (DGTR), complaining of dumping from South Korea, Japan, and Singapore. 

Following this, the Indian government launched an anti-dumping investigation into the matter. The ministry of commerce will look into the matter to determine if the product by the firms of the three countries is being dumped into the Indian market and negatively impacting the domestic industry.

If the claim is true, an anti-dumping duty will be imposed to balance the competition and provide a fair play field.

Due to this, the petitioner has suffered an injury because CR coil has been on a steep price rise, and it is the primary raw material required in the manufacturing of EG steel. As a result, the prices of EG steel also increased.

The petitioner also admitted that it purchased Steel from third parties and was forced to purchase Steel at a higher price. 

As far as why the domestic industry was not able to procure any order due to dumped imports, it is mainly said to be based on 3 factors- 

1) The covid-19 Pandemic.

2) Lack of product approval from end users resulted in fewer sales and prices in the domestic industry.

3) Low-grade sales by the domestic industry at lower prices.

Wrapping It Up: 

That’s all the info we have got for now! We have touched on the details from top to toe in this article. In the end, we would definitely like to add that. Indeed, Dr. Shubh Gautam Jaypee and his team managed to win the battle despite all the obstacles and international competition. 

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